Yen Gains Amid Fresh Verbal Warning
The Japanese yen strengthened past 158 per dollar on Thursday, reaching a one-week high after Finance Minister Satsuki Katayama warned that authorities were prepared to intervene in the currency market again if necessary. She also emphasized that Washington and Tokyo’s position remained unchanged following their joint intervention to support the yen in July. Her comments came after the currency weakened on Wednesday in response to hotter-than-expected US inflation data. On the monetary policy front, Bank of Japan board member Junko Koeda cautioned against excessive restraint in raising interest rates, signaling that the central bank could remain on track for further rate increases in the coming months. Earlier reports indicated that the BOJ was hesitant to implement an unusual back-to-back rate hike this month, while still considering a potential increase in December.
The Japanese yen strengthened past 158 per dollar on Thursday, reaching a one-week high after Finance Minister Satsuki Katayama warned that authorities were prepared to intervene in the currency market again if necessary. She also emphasized that Washington and Tokyo’s position remained unchanged following their joint intervention to support the yen in July. Her comments came after the currency weakened on Wednesday in response to hotter-than-expected US inflation data.
On the monetary policy front, Bank of Japan board member Junko Koeda cautioned against excessive restraint in raising interest rates, signaling that the central bank could remain on track for further rate increases in the coming months. Earlier reports indicated that the BOJ was hesitant to implement an unusual back-to-back rate hike this month, while still considering a potential increase in December.